Bankster throws down the gauntlet on regulation; says Bernanke's weak-sauce regulation is too much

[marmar]

(Bloomberg) JPMorgan Chase & Co. (JPM) Chief Executive Officer Jamie Dimon’s public questioning of Federal Reserve Chairman Ben S. Bernanke on bank regulatory costs has “thrown down the gauntlet” in the industry’s increasingly aggressive fight to curb higher capital requirements and other rules.

“They threw out the first ball, now can they play the game?” said William Poole, former president of the Federal Reserve Bank of St. Louis, in an interview yesterday. “How persuasively can Dimon and others make their case?”

Dimon, head of the most profitable U.S. bank, took an unusual step in pressing Bernanke in a public forum on June 7 on whether regulators have gone too far in reining in the U.S. banking system and are slowing economic growth. The U.S. unemployment rate rose to 9.1 percent in May as the S&P/Case- Shiller index of property values in 20 cities showed that U.S. home prices slumped in March to their lowest since 2003.

Poole, who warned of Fannie Mae’s and Freddie Mac’s risks years before the mortgage giants collapsed and who also supports higher capital requirements for banks, said Dimon had a valid point. Excessive regulation in the U.S. is slowing the economic recovery, Poole said. ...............(more)

The complete piece is at: http://www.bloomberg.com/news/2011-06-09/dimon-challenging-bernanke-channels-wall-street-s-bid-to-break-regulators.html

[midnight]

1. Now we are going to get the good cop, bad cop routine...

"Dimon, head of the most profitable U.S. bank, took an unusual step in pressing Bernanke in a public forum on June 7 on whether regulators have gone too far in reining in the U.S. banking system and are slowing economic growth. The U.S. unemployment rate rose to 9.1 percent in May as the S&P/Case- Shiller index of property values in 20 cities showed that U.S. home prices slumped in March to their lowest since 2003."

And by profitable do they mean, the bank that received the biggest bailout?

[dixiegrrrrl]

2. Did ya notice Bloomberg's bit of propaganda in there?

"on whether regulators have gone too far in reining in the U.S. banking system and are slowing economic growth. "

so, unless we leave the big banks alone, regulators will be responsible for slowing economic growth, eh?